GGRAsia – GEN Malaysia to sell Miami unit that owns land plots

GEN Malaysia to sell Miami unit that owns land plots

May 12, 2023 Newsdesk Latest News, Top of the deck, World

Casino operator Genting Malaysia Bhd announced on Thursday that it would dispose its full interests in a wholly-owned subsidiary that owns some parcels of land in Miami, Florida in the United States, instead of just selling the plots owned by that subsidiary.

The casino investor stated in late April that one of its units, Resorts World Miami LLC (RW Miami), is to sell four parcels of land – for a total cash consideration of just below US$1.23 billion – to Smart Miami City LLC, the latter a unit of real estate developer Terra Group

Genting Malaysia on Thursday announced that the deal was to be amended because the purchaser had exercised its right to convert the transaction to a purchase of 100 percent of the ownership interests in RW Miami, instead of the land plots.

“Accordingly, the purchaser and RW Miami shall work in good faith to negotiate an amendment to the SPA [sale and purchase agreement] to effect the change in the transaction structure of the proposed disposal to a disposal of 100 percent of the ownership interests in RW Miami,” Genting Malaysia stated in its latest filing.

Genting Malaysia operates Resorts World Genting, Malaysia’s only licensed casino property. The group also runs casinos in the United States – via associated businesses – and in the Bahamas, the United Kingdom, and Egypt.

In early May, the global casino operator said that US$1.0 billion of the transaction proceeds would be used to fund “future investments, as and when they arise”.

Genting Malaysia has for some time been identified as a likely suitor for a downstate casino licence in New York. The New York State Gaming Commission in January launched a request for applications (RFA) process for three downstate New York gaming licences.

A number of investment analysts has suggested that Genting group could be a front runner there. It already runs an electronic games facility called Resorts World Casino New York City; and has investment in Empire Resorts Inc, which runs the full-service casino Resorts World Catskills, in upstate New York.